Answer:
overapplied overhead
$181,000
Explanation:
Prime cost:
= Direct labor cost + Direct materials
= $52,000 + $34,000
= $86,000
Works cost:
= Prime cost + Manufacturing overhead cost applied
= $86,000 + $74,000
= $160,000
Cost of production:
= Works cost + Opening work in process - Ending work in process
= $160,000 + $30,000 - $20,000
= $170,000
Cost of goods sold:
= Cost of production + Opening finished goods - Ending finished goods
= $170,000 + $46,000 - $33,000
= $183,000
Manufacturing overhead cost incurred = $72,000
Overhead is over applied.
Therefore,
Cost of goods sold:
= Cost of goods sold - Manufacturing overhead cost applied + Manufacturing overhead cost incurred
= $183,000 - $74,000 + $72,000
= $181,000
